InvestorQ : When is the next issue of Sovereign Gold Bonds opening and do you suggest buying these gold bonds?
Anamika Sodhani made post

When is the next issue of Sovereign Gold Bonds opening and do you suggest buying these gold bonds?

Answer
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Juvina Maggie answered.
2 months ago


In fact, the sixth tranche of the Sovereign Gold Bond Scheme or the SGBZ is scheduled to open next week and the price has been fixed at Rs.5117 per gram. The issue will open for subscription on August 31, 2020 and remain open till Friday, September 4, 2020.

This is slightly lower than the Series V of August 03 which was priced at Rs.5334 per gram of gold. The government, as a means to encourage digital transactions, will also offer a discount of Rs.50 per gram to investors applying online and paying via digital mode.

SGBs or sovereign gold bonds are denominated in multiples of grams of gold with basic unit fixed at 1 gram. The bonds will have a tenor of 8 years with exit option after the fifth year. Interest at the rate of 2.50% per annum will be paid half yearly to the holders.

The SGBs can be only sold to resident Indians and not to NRIs. The big advantage is that if you hold the bonds for a period of full 8 years then any capital gains arising on the sale of the bond will be entirely tax-free in the hands of the investor. Max limit is 4KG per person.